Using Credit Wisely

Use Credit Wisely – Build a Great Credit Rating

It is sometimes easy to forget that you have to pay for what you buy.  Here are some guidelines for keeping control of your financial affairs and making credit work for you-not against you

• Make a budget and stick to it.  Make sure you know what is coming in and what’s going out.  That way you can avoid nasty surprises.
• Avoid impulse buying.  If you had to pay in cold, hard cash – would you still buy it?
• Comparison shop – never buy anything without comparing costs and value
• Be careful co-signing or guaranteeing a loan for someone else – you could get stuck paying it off.  Know the risks!
• Be sensible about the number of credit cards you have.  How many to you really need?
• Keep track of all your credit purchases.  Save your receipts and check them against your monthly statements
• Whenever you buy anything – know the reputation of the store, the return policies, warranty and quality of what you are buying.

What is a credit rating and how do I get one?

A credit history is a report card on how well you followed the rules with loans and credit cards – also called a credit rating.  The easiest way to start developing a credit history is with a credit card. If you don't want to use credit but want to establish a credit rating, our Global Payment Card may be the answer. This way you can access a line of credit attached to your chequing account, at a lower interest rate. It's likeusing a debit card or writing a cheque, but with the flexibility of a credit card!

The Credit Bureau - "The Credit Police"

A report called a “credit bureau” holds the information about your credit history and rating. Its job is to share your credit history with anyone who wants to check, but only with your permission. You often have to give a company permission to check up on you when you sign a credit card or loan application. You’ve heard the old saying - read the fine print?  Do it! About once a month, an update on you is sent to the credit bureau. The better you are at following the rules, the better your credit history and report grade will be. Find out your credit rating?

What are the Credit Rating' Rules'?

• Pay off your credit card in full by the due date. If you cannot pay off your credit card in full, pay as much as you can - paying off as much as you can will save you money.
• Have only one credit card
• If you run into money problems - let the credit card company know and call us for help

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